Alert issued for Green Dot MoneyPak prepaid card scams

The Wisconsin Better Business Bureau is warning consumers to beware of scammers who use the Green Dot MoneyPak prepaid cards to scam.

The reloadable MoneyPak debit cards can be purchased at many local stores. Consumers typically use them to pay PayPal accounts and phone, cable or credit card bills. But scammers are using them to con consumers, the BBB said in an alert Monday.

"Fraudsters will call or email you saying that you won a lottery or sweepstakes, or offering a product or service at a discount price," the alert said. "Then they say you need to pay fees to get your prize, or pre-pay for the merchandise via MoneyPak. Next, they ask for the 14-digit code found on the back of the card. Once you’ve given them that code, you’ve given them instant access, and the crooks can transfer your MoneyPak funds to their own prepaid cards."

Ran Hoth, president and CEO of the Wisconsin BBB, advised consumers to not give out the code on the card to anyone they don't know.

Don’t use MoneyPak to pay taxes or fees to claim “winnings” on a foreign lottery or prize promotion. Foreign lotteries are illegal, and you shouldn’t have to pay to receive a prize. Unless it’s an approved MoneyPak partner, don’t use MoneyPak for any offer that requires you to pay before you get an item.

Advance-fee loan offers are illegal and targeted at customers struggling with debt and poor credit.

Never pay a fee — via MoneyPak or wire transfer — to collect a prize or sweepstakes win. It's a scam.

Avoid offers that don’t accept credit card payments and require you to purchase a MoneyPak and provide the card number via e-mail or phone.

Remember, unlike credit cards, MoneyPak transactions can never be reversed.

If you think you've been scammed, contact your local police department and the Federal Trade Commission. Note: The FTC does not deal with individual complaints, but uses the information to identify patterns of wrong-doing.

About Gitte Laasby

Gitte Laasby is the Milwaukee Journal Sentinel's Public Investigator. She investigates government issues and consumer affairs.